Page 660 - ES 2020-21_Volume-1-2 [28-01-21]

Industry and Infrastructure 287

8.33 India is the sixth-largest exporter of textile and apparel products after China, Germany,
Bangladesh, Vietnam, and Italy. India is well known in the global market for many products
including cotton yarn, fashion garments, hand-made carpets, etc. The designing capability
of this industry is respected worldwide, which has helped the country to build its image as
an industrial powerhouse. The sector is, however, vulnerable to several internal and external
economic challenges that affect its overall performance.

Box 6: Production Linked Incentive Scheme

The Atmanirbhar Bharat has brought manufacturing at centre stage and emphasized its significance
in driving India’s growth and creating jobs. A strong, vigorous and dynamic manufacturing sector
will be a driver of growth. Countries across the world, which have transitioned from low to high per
capita income, have heavily relied on manufacturing and export led growth. This points to the need
for a well-planned strategy to attract investment, ensure efficiency and economies of scale, and make
Indian manufacturing companies globally competitive.
With the objective of enhancing India’s manufacturing capabilities and exports, the GoI has introduced
the Production-Linked Incentive (PLI) Scheme in the 10 key sectors under the aegis of Atmanirbhar
Bharat (Table below). The scheme will be implemented by the concerned ministries with an overall
expenditure estimated at ` 1.46 lakh crores and with sector specific financial limits.

The scheme will make Indian manufacturers globally competitive, attract investment in the areas
of core competency and cutting-edge technology; ensure efficiencies, create economies of scale,
enhance exports, provide conducive manufacturing ecosystem, and make India an integral part of the
global supply chain especially for the 10 sectors identified under the scheme. Further the scheme will
also establish backward linkages with the MSME sector in the country which in turn will lead to more
inclusive growth and create huge employment opportunities.

Estimated Expenditure
Sector in PLI
(` Crores)
Advance Cell Chemistry Battery 18,100
Electronic/Technology Products 5,000
Automobiles & Auto Components 57,042
Pharmaceuticals Drugs 15,000

Telecom & Networking Products 12,195
Textile Products 10,683
Food Products 10,900
High Efficiency Solar PV Modules 4,500
White Goods (ACs & LED) 6,238
Specialty Steel 6,322
Total 1,45,980

INFRASTRUCTURE

8.34 Basic infrastructure facilities in the country provide the foundation of growth. In the
absence of adequate infrastructure, the economy operates at a suboptimal level and remains